<PAGE>
- --------------------------------------------------------------------------------
MANAGED MUNICIPALS
PORTFOLIO INC.
QUARTERLY REPORT
February 28, 1995
[LOGO]
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Front cover showing a crest/emblem on the bottom of page with an eagle and two
cupids at the top of the page the fund name centered.
<PAGE>
MANAGED MUNICIPALS
PORTFOLIO INC.
FEBRUARY 28, 1995
DEAR SHAREHOLDER:
The quarter ended February 28, 1995 saw a significant rebound in prices for
municipal bonds (and a corresponding decline in yields) from the low point
reached in mid-November. The market subsequently began to realize that the fear
of significant inflation and much more stringent Federal Reserve Board policy
which would drive interest rates higher was severely exaggerated. The economic
numbers began to gradually ease and the possibility of that elusive "soft
landing" has become more realistic.
This change in attitude has had a profound impact on the municipal
marketplace. It went from a tax-loss driven wave of selling in mid-November to a
market that is now performing brilliantly and starved for new issuance. We
expect this tight supply condition to be with us for the next several years, and
contribute to strong relative performance by the municipal market.
The recent rally vindicates the investment strategy that we have been
pursuing. As the market weakened, we used the selloff to reposition the Fund
with maturities that were somewhat longer, and to increase its holdings of
discount coupons (bonds that are selling below their redemption value). In a
market rally, discount-coupon bonds provide two important features: They will
clearly be the best-performing asset class in an up market and also provide a
great deal of call protection, which reduces the chance of having bonds called
away as interest rates decline. Until we see real inflationary trends, or a
significant pickup in economic activity, we will maintain this strategy of
investing in high-quality, discount bonds.
We have attempted to position the Fund in essential service revenue bonds
with a preference for credits rated AA or higher. At the end of this quarter,
over 50% of the fund's assets were rated AA or AAA. Orange County has once again
pointed out that there are still risks in the municipal market to be avoided,
and that the real value is found in the highest quality, not the highest yields.
CONTINUED
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------------------------------
<PAGE>
The Fund's investment performance in the latest quarter was what we had
anticipated it would be in a better market environment. The net asset value of
the fund increased by $.96 per share during the past three months, to $12.23
from $11.27. We would expect the net asset value to continue to improve if in
engineering a "soft landing" the Federal Reserve Board is successful.
We look forward to reporting to you in May in the Fund's annual report to
investors. Should you have any questions about your investment in the Fund,
please call The Shareholder Services Group at (800) 331-1710.
Sincerely,
Heath B. McLendon Joseph P. Deane
CHAIRMAN OF THE BOARD VICE PRESIDENT AND
INVESTMENT OFFICER
April 3, 1995
JOE DEANE WILL BE APPEARING AS A SPECIAL GUEST ON
WALL $TREET WEEK WITH LOUIS RUKEYSER
ON MAY 5TH, ON THE PBS TELEVISION NETWORK.
CHECK YOUR LOCAL LISTINGS FOR TIME AND CHANNEL.
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<PAGE>
UNAUDITED FINANCIAL DATA
PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
CAPITAL
NYSE NET GAINS DIVIDEND
CLOSING ASSET DIVIDEND DIVIDEND REINVESTMENT
PRICE VALUE PAID PAID PRICE
-------- ------- -------- -------- ------------
<S> <C> <C> <C> <C> <C>
March 31, 1994........ $11.375 $12.23 $0.061 -- $11.91
April 30, 1994........ 11.250 12.23 0.061 -- 11.98
May 31, 1994.......... 11.500 12.26 0.061 -- 11.82
June 30, 1994......... 11.500 12.11 0.061 -- 11.86
July 31, 1994......... 11.625 12.32 0.061 -- 11.90
August 31, 1994....... 11.500 12.29 0.061 -- 11.64
September 30, 1994.... 11.000+ 11.98+ 0.061 -- 11.43
October 31, 1994...... 11.125+ 11.79+ 0.061 -- 10.81
November 30, 1994..... 10.375+ 10.99+ 0.061 -- 10.58
December 31, 1994..... 10.250+ 11.33+ -- $0.140 10.87
January 31, 1995...... 11.000+ 11.56+ 0.061 -- 11.33
February 28, 1995..... 11.375+ 12.07+ 0.061 -- 11.46
</TABLE>
DIVIDEND DATA*
FOR THE PERIOD ENDED FEBRUARY 28, 1995
<TABLE>
<CAPTION>
EQUIVALENT TAXABLE DISTRIBUTION RATE
--------------------------------------------------------------------
ASSUMING
PER SHARE ANNUALIZED ASSUMING ASSUMING ASSUMING 39.6%
DIVIDEND DISTRIBUTION 28% FEDERAL 31% FEDERAL 36% FEDERAL FEDERAL
DISTRIBUTIONS RATE TAX BRACKET TAX BRACKET TAX BRACKET TAX BRACKET
------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$0.061 5.99% 8.32% 8.68% 9.36% 9.92%
<FN>
- -------------
* Based on February 28, 1995, net asset value of $12.23 per share.
+ As of record date: September 23, 1994, October 24, 1994, November 22, 1994,
December 22, 1994, January 24, 1995, and February 21, 1995, respectively.
</TABLE>
Each registered shareholder is considered a participant in the Portfolio's
Dividend Reinvestment Plan, unless the shareholder elects to receive all
dividends and distributions in cash, or unless the shareholder's shares are
registered in the name of a broker, bank or nominee (other than Smith Barney
Inc.) which does not provide the service. Questions and correspondence
concerning the Dividend Reinvestment Plan should be directed to The Shareholder
Services Group, Inc., P.O. Box 1376, Boston, Massachusetts 02104.
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<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
KEY TO INSURANCE ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
MBIA -- Municipal Bond Investors Assurance
PSF -- Permanent School Funds Guarantee
</TABLE>
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
<C> <S> <C> <C> <C>
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MUNICIPAL BONDS AND NOTES--105.5%
ALASKA -- 5.7%
Valdez, Alaska, Marine Terminal Revenue:
$ 3,000,000 (Mobil Alaska Pipeline),
5.750% due 11/1/28 Aa2 AA $ 2,741,250
(B.P. Pipeline Project):
14,000,000 5.650% due 12/1/28 A1 AA- 12,337,500
10,000,000 Series A,
5.850% due 8/1/25 A1 AA- 9,112,500
ARIZONA -- 0.9%
4,000,000 Greenlee County, Arizona, Industrial Development
Authority, (Phelphs Dodge),
5.450% due 6/1/09 A3 A 3,735,000
CALIFORNIA -- 16.2%
1,850,000 California Housing Financing Agency Revenue, Series B,
5.700% due 2/1/25 Aa AA 1,676,563
5,000,000 California State Water Reservoir Resource Revenue,
5.500% due 12/1/23 Aa AA 4,518,750
3,500,000 Contra Costa, California, Water District, Series F, (FGIC
insured),
5.000% due 10/1/20 Aaa AAA 2,975,000
16,000,000 Los Angeles, California, Convention & Exhibition Center
Authority Lease Revenue, (MBIA insured),
5.125% due 8/15/21 Aaa AAA 13,840,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 4
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<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
CALIFORNIA (CONTINUED)
Los Angeles, California, Regional Airport Improvement
Corporation:
$ 3,300,000 (Los Angeles International Airport), Lease Revenue,
6.500% due 1/1/32 NR A $ 3,163,875
1,500,000 Regional Airport Improvement, Lease Revenue,
6.800% due 1/1/27 NR A 1,503,750
Los Angeles, California, Waste Water System Revenue, (MBIA
insured):
12,575,000 Series A,
5.700% due 6/1/20 Aaa AAA 11,883,375
Series B:
6,205,000 5.200% due 11/1/21 Aaa AAA 5,421,619
1,500,000 5.700% due 6/1/23 Aaa AAA 1,413,750
10,000,000 Los Angeles County, California, Metropolitan
Transportation Authority Sales Tax Revenue, (AMBAC
insured),
5.250% due 7/1/23 Aaa AAA 8,775,000
5,000,000 Los Angeles County, California, Transportation Authority,
(AMBAC insured),
5.625% due 7/1/18 Aaa AAA 4,668,750
San Joaquin Hills, California, Transportation Authority,
Corridor Agency Toll Road, Sr. Lien Revenue:
16,000,000 Zero Coupon due 1/1/17 NR NR 3,380,000
25,000,000 Zero Coupon due 1/1/18 NR NR 4,937,500
COLORADO -- 8.8%
2,000,000 Colorado Springs, Colorado, Airport Revenue, Series A,
7.000% due 1/1/22 NR BBB 2,045,000
100,000,000 Dawson Ridge Metropolitan District #1, Series B,
Zero Coupon due 10/1/22 Aaa NR 15,250,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 5
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<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
COLORADO (CONTINUED)
Denver, Colorado, Airport Revenue, Series C:
$ 4,000,000 6.750% due 11/15/22 Baa BB $ 3,810,000
18,325,000 6.125% due 11/15/25 Baa BB 15,988,562
FLORIDA -- 7.3%
Florida State, Board of Education, Capital Outlay:
8,550,000 5.200% due 6/1/19 Aa AA 7,598,812
3,000,000 Series C,
5.875% due 6/1/23 Aa AA 2,917,500
10,000,000 Series F,
6.000% due 6/1/20 Aa AA 9,962,500
5,000,000 Martin County Florida, Industrial Development Project,
7.875% due 12/15/25 Baa3 BBB- 5,306,250
Tampa, Florida, Revenue Bonds, (Aquarium Project):
3,000,000 7.550% due 5/1/12 NR NR 3,101,250
2,000,000 7.750% due 5/1/27 NR NR 2,052,500
ILLINOIS -- 1.1%
5,000,000 Metropolitan Pier & Exposition Authority, (MBIA insured),
6.000% due 6/15/27 Aaa AAA 4,793,750
INDIANA -- 5.1%
18,305,000 Indiana Bond Bank, Revenue Guarantee, State Revolving
Fund, Series A,
6.000% due 2/1/15 NR A 17,595,681
4,000,000 Indiana Port Commission Revenue Refunding Project,
(Cargill Inc. Project),
6.875% due 5/1/12 Aa3 NR 4,190,000
LOUISIANA -- 1.1%
4,500,000 Saint Martin Parish,
Louisiana, Industrial Project,
(Cargill Inc. Project),
6.625% due 10/1/12 Aa3 NR 4,640,625
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 6
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<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
MARYLAND -- 2.5%
$10,000,000 Maryland State Energy Financing Administration,
(Hagerstown Project),
9.000% due 10/15/16 NR NR $ 10,337,500
MASSACHUSETTS -- 7.1%
5,000,000 Commonwealth of Massachusetts, Turnpike Authority,
Turnpike Revenue,
5.000% due 1/1/20 A1 A+ 4,206,250
4,115,000 Massachusetts Bay Transportation Authority, Series B,
5.500% due 3/1/21 A1 A+ 3,775,513
3,000,000 Massachusetts State Health & Education, (MBIA insured),
5.375% due 7/1/24 Aaa AAA 2,647,500
10,000,000 Massachusetts State Industrial Financing Agency, (Recycle
Fitchburg),
9.000% due 8/1/16 NR NR 10,412,500
8,900,000 Massachusetts State Water Resource Authority, Series A,
(MBIA insured),
6.000% due 8/1/24 Aaa AAA 8,699,750
MICHIGAN -- 4.6%
2,000,000 Michigan State Strategic Funding, Ltd., (Blue Water Fiber
Project),
8.000% due 1/1/12 NR NR 1,970,000
16,375,000 Midland County, Michigan, Economic Development
Corporation, Pollution Control Revenue, Series B,
9.500% due 7/23/09 NR NR 17,500,781
MINNESOTA -- 6.9%
2,500,000 Duluth, Minnesota, Seaway Port Authority, Industrial
Development, Dock & Wharf Revenue, (Cargill Inc. Project),
6.800% due 5/1/12 Aa3 NR 2,609,375
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 7
- ------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
MINNESOTA (CONTINUED)
$15,505,000 St. Paul, Minnesota, Housing Redevelopment Agency,
Hospital Revenue, Series D, (Health East Project),
9.750% due 11/1/17 Baa BBB- $ 17,113,644
10,325,000 St. Paul, Minnesota, Housing Redevelopment Authority,
(MBIA insured),
5.550% due 11/1/23 Aaa AAA 9,511,906
MONTANA -- 1.7%
8,000,000 Montana State Board Investment Resources Recovery,
Yellowstone Energy LP Project,
7.000% due 12/31/19 NR NR 7,320,000
NEBRASKA -- 0.7%
3,000,000 Nebraska Investment Finance Authority, Series A, Mortgage
Revenue, (GNMA insured),
6.700 due 9/1/26 NR AAA 3,030,000
NEW HAMPSHIRE -- 1.5%
7,000,000 New Hampshire Higher Education & Health Revenue, (Mary
Hitchcock Memorial Hospital Project), (FGIC insured),
5.250% due 8/15/21 Aaa AAA 6,133,750
NEW JERSEY -- 1.9%
5,200,000 Hudson County, New Jersey, Improvement Authority,
Essential Purpose,
6.625% due 8/1/25 NR A+ 5,408,000
2,910,000 South Jersey, New Jersey, Marine Port Terminal Revenue,
Series G,
5.600% due 1/1/23 NR A+ 2,695,387
NEW YORK -- 8.9%
Battery Park City Authority Revenue:
4,800,000 5.250% due 11/1/17 A1 AA 4,152,000
3,000,000 Series A,
5.700% due 11/1/20 A1 AA 2,745,000
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 8
- ------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
$16,000,000 New York, New York, City Municipal Water Financing
Authority, Series A,
5.500% due 6/15/20 A A- $ 14,440,000
4,000,000 New York State, Housing Corporation,
5.500% due 11/1/20 A1 AA 3,645,000
New York State, Local Government Assistance:
8,225,000 Series B,
5.500% due 4/1/21 A A 7,474,469
5,300,000 Series C,
5.500% due 4/1/18 A A 4,842,875
RHODE ISLAND -- 1.3%
5,590,000 Rhode Island State Health & Higher Education Facilities,
Educational Building Corporation Revenue, (Roger Williams
College),
6.500% due 11/15/24 NR AAA 5,631,925
SOUTH CAROLINA -- 0.5%
2,000,000 Myrtle Beach, South Carolina, Certificates of
Participation, (Myrtle Beach Convention Center Project),
6.875% due 7/1/07 Baa1 BBB+ 2,045,000
TENNESSEE -- 1.2%
5,000,000 Loudon County, Industrial Development Revenue, (Kimberly
Clark),
6.2000% due 2/1/23 Aa2 AA 4,925,000
TEXAS -- 5.7%
7,000,000 Arlington, Texas, Independent School District,
5.750% due 2/15/21 Aaa NR 6,702,500
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 9
- ------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
TEXAS (CONTINUED)
$ 4,000,000 Burleson, Texas, Independent School District,
6.750% due 10/1/24 Aaa NR $ 4,190,000
1,890,000 Cypress-Fairbanks, Texas, Independent School District,
(PSF insured),
5.750% due 2/15/18 Aaa AAA 1,814,400
12,250,000 Sam Rayburn, Texas, Municipal Power Agency, Supply
Systems, Revenue Refunding, Series A,
6.750% due 10/1/14 Ba BB 11,193,438
VIRGINA -- 1.1%
4,700,000 Harrisonburg, Virginia, Redevelopment and Housing
Authority, Public Facility Lease Revenue, (Jail &
Courthouse Project),
6.500% due 9/1/14 A1 NR 4,782,250
WASHINGTON -- 8.1%
4,750,000 Chelan County, Washington, Public Utilities District,
Series 1993A, District 4, (mandatory put 7/1/19),
6.750% due 7/1/62 A1 A+ 4,809,375
Washington State, General Obligation Bond:
3,000,000 Series 93A,
5.750% due 10/1/17 Aa AA 2,865,000
4,000,000 Series A,
5.750% due 9/1/19 Aa AA 3,815,000
11,700,000 Washington State Health Care Facilities, (Sisters of
Providence Hospital),
7.875% due 10/1/10 A1 AA- 12,606,750
Washington State Public Power:
6,250,000 Series B,
5.625% due 7/1/12 Aa AA 5,750,000
Series C,
5,055,000 5.375% due 7/1/15 Aa AA 4,442,081
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 10
- ------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Market
Rating Value
Face Value Moody's S&P (Note 1)
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
WEST VIRGINA -- 2.0%
$ 9,000,000 Marion County, West Virginia, Solid Waste Disposal, County
Commission,
7.750% due 12/1/11 NR NR $ 8,325,000
WISCONSIN -- 3.6%
4,070,000 Wisconsin State, General Obligation, Series B,
6.600% due 1/1/22 Aa AA 4,202,275
Wisconsin State Health and Educational Facilities
Authority:
2,000,000 (Aurora), Health Care Obligated Credit, (MBIA insured),
5.250% due 8/15/23 Aaa AAA 1,692,500
6,770,000 (Marquette University Project), (MBIA insured),
5.500% due 12/1/11 Aaa AAA 6,296,100
3,215,000 Wisconsin State Transportation Revenue, Series A,
5.500% due 7/1/22 A1 AA- 2,949,763
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TOTAL MUNICIPAL BONDS AND NOTES
(COST $436,844,206) 445,046,169
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $436,844,206*) 105.5% 445,046,169
OTHER ASSETS AND LIABILITIES (NET) (5.5) (23,231,800)
- ---------------------------------------------------------------------------
NET ASSETS 100.0% $421,814,369
- ---------------------------------------------------------------------------
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 11
- ------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
SUMMARY OF MUNICIPAL BONDS BY COMBINED RATINGS
<TABLE>
<CAPTION>
PERCENT
MOODY'S S & P OF VALUE
<S> <C> <C> <C>
Aaa or AAA 28.2%
Aa AA 25.7
A A 17.6
Baa BBB 10.4
Ba BB 2.5
NR NR 15.6
----------
100.0%
----------
----------
</TABLE>
SEE NOTES TO
PORTFOLIO OF INVESTMENTS.
- ---------------------------------- 12
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Managed Municipals Portfolio Inc. (the "Portfolio") was organized as a
corporation under the laws of the State of Maryland on April 9, 1992 and is
registered with the Securities and Exchange Commission as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended. The policies described below are followed consistently by the
Portfolio in the valuation of its portfolio.
PORTFOLIO VALUATION: Investments are valued by The Boston Company Advisors,
Inc. ("Boston Advisors") after consultation with an independent pricing service
(the "Service") approved by the Board of Directors. When, in the judgment of the
Service, quoted bid prices for investments are readily available and are
representative of the bid side of the market, these investments are valued at
the mean between the quoted bid prices and asked prices. Investments for which,
in the judgment of the Service, no readily obtainable market quotations are
available are carried at fair value as determined by the Service, based on
methods that include consideration of: yields or prices of municipal obligations
of comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. The Service may use electronic data
processing techniques and/or a matrix system to determine valuations. Short-term
investments that mature in fewer than 60 days are valued at amortized cost.
- --------------------------- 13
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<PAGE>
NOTES TO PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
QUARTERLY RESULTS OF OPERATIONS
NET REALIZED AND NET INCREASE/
UNREALIZED GAIN/ (DECREASE) IN NET
INVESTMENT NET INVESTMENT (LOSS) ON ASSETS FROM
INCOME INCOME INVESTMENTS OPERATIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
PER PER PER PER
QUARTER ENDED TOTAL SHARE TOTAL SHARE TOTAL SHARE TOTAL SHARE
--------------------------------------------------------------------------------------
August 31, 1992 $4,525,875 $.13 $3,784,459 $.11 $ 6,021,320 $.18 $ 9,805,779 $.29
November 30,
1992 6,700,130 .20 5,735,834 .17 (1,009,530) (.03) 4,726,304 .14
February 28,
1993 6,927,436 .20 5,789,926 .17 31,655,970 .93 37,445,896 1.10
May 31,
1993 7,247,334 .21 6,223,844 .18 (3,693,473) (.11) 2,530,371 .07
August 31, 1993 6,954,864 .20 5,796,493 .17 14,702,966 .43 20,499,459 .60
November 30,
1993 6,803,020 .17 5,731,243 .17 (1,381,672) (.08) 4,349,571 .09
February 28,
1994 6,678,467 .19 5,549,454 .16 (4,168,370) (.12) 1,381,084 .04
May 31,
1994 7,004,102 .24 5,910,189 .17 (17,312,645) (.46) (11,402,456) (.29)
August 31, 1994 7,178,807 .21 6,027,342 .18 (782,448) (.02) 5,244,894 .16
November 30,
1994 7,092,384 .20 6,096,465 .17 (32,730,626) (.95) (26,634,161) (.78)
February 28,
1995 7,280,844 .21 6,181,630 .18 35,883,360 1.04 42,064,990 1.22
--------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
MANAGED MUNICIPALS
PORTFOLIO INC.
DIRECTORS
Charles F. Barber
Allan J. Bloostein
Martin Brody
Dwight B. Crane
Robert A. Frankel
Heath B. McLendon
OFFICERS
Heath B. McLendon
CHAIRMAN OF THE BOARD AND
INVESTMENT OFFICER
Jessica Bibliowicz
PRESIDENT
Joseph P. Deane
VICE PRESIDENT
AND INVESTMENT OFFICER
David Fare
INVESTMENT OFFICER
Lewis E. Daidone
SENIOR VICE PRESIDENT
AND TREASURER
Christina T. Sydor
SECRETARY
INVESTMENT ADVISER
Greenwich Street Advisors
388 Greenwich Street
New York, New York 10013
ADMINISTRATOR
Smith Barney Mutual Funds
Management Inc.
388 Greenwich Street
New York, New York 10013
SUB-ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
AUDITORS AND COUNSEL
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
Willkie Farr & Gallagher
153 East 53rd Street
New York, New York 10022
TRANSFER AGENT
The Shareholder Services Group, Inc.
Exchange Place
Boston, Massachusetts 02109
CUSTODIAN
Boston Safe Deposit and
Trust Company
One Boston Place
Boston, Massachusetts 02108
- --------------------------- 15
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<PAGE>
- --------------------------------------------------------------------------------
THIS REPORT IS SENT TO THE SHAREHOLDERS OF THE
MANAGED MUNICIPALS PORTFOLIO INC.
FOR THEIR INFORMATION. IT IS NOT A PROSPECTUS,
CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE
PURCHASE OR SALE OF SHARES OF THE PORTFOLIO OR OF ANY
SECURITIES MENTIONED IN THE REPORT.
FD0879 D5
- --------------------------------------------------------------------------------
